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Evaluation of potential benefits is the key issue to set up suitable business model and pricing strategy for demand response. In view of the severe energy and environmental issues, low carbon development is inevitable as well. In this paper a demonstration project of smart distribution grid in Jiangxi province in China is introduced. The mechanism of demand response in this demonstration project is analyzed. Then a framework is proposed to identify the corresponding potential low-carbon effects of smart distribution network and a specific evaluation method has been established to quantify the total low-carbon effects of smart distribution grid. Moreover a simulation platform to evaluate the carbon dioxide emission of smart distribution grid is designed. It is expected that, possible demand response solutions and potential low-carbon effects could be analyzed accordingly based on this platform.